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“Fuel will be fully sold in ZiG”: Guvamatanga

Finance, Economic Development, and Investment Promotion permanent secretary, George Guvamatanga, said that all Government ministries, departments and agencies will soon be forced to accept ZiG payments.

ZiG, short for Zimbabwe Gold, has been the official currency of Zimbabwe since April 8, 2024. The new currency is backed by 2,522 kilograms of gold and approximately US$100 million in foreign currency reserves held by the central bank.

The new currency has been met with scepticism by most Zimbabweans, who harbour a deep-seated mistrust of the Reserve Bank of Zimbabwe (RBZ). This scepticism dates back to 2008 when the RBZ printed Z$10 trillion notes during a period of hyperinflation.

Furthermore, certain government departments, including the Civil Registry Department, responsible for issuing passports, refused to accept the predecessor of ZiG, which was the Zimbabwe dollar. This refusal has eroded confidence in the local currency.

Also Read: Mthuli Ncube Discusses Civil Servants’ Salaries Post ZiG Currency Launch

Speaking during a 2024 Monetary Policy Statement breakfast meeting in Harare on Tuesday, Guvamatanga also said the country has not de-dollarised as the multi-currency regime was still in place. He said:

The multi-currency regime was an agreed position between Government and industry and that is why industry is also using the US dollar as we speak today.

So, in that journey, there will be a point where fuel will be fully sold in ZiG and all duties will be payable in ZiG.

There shall be a point where all Government ministries, departments and agencies are forced to accept the currency. We are going to be forcing them very soon.

We have not de-dollarised, and we are still in a multi-currency system. It is a journey.

Yesterday, the RBZ said motorists won’t be immediately able to buy diesel and petrol using the new currency.

In a document addressing some of the questions about ZiG, the central bank also said ZiG is not yet recognised internationally and cannot be used to make international payments as it has not yet achieved convertibility.

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